# Calculating optimal number of workers in the given case

A cost minimizing firm has an output function of the form y=2K^(.5) L^.(5)

K and L are quantity of physical capital and labor employed respectively.

Rental rate of capital R = $100

Wage of Labor W= $50

If this cost minimizing firm employs 50 units of capital (k=50), how many workers does this firm employ?

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#### Solution Preview

y=2K^0.5L^0.5

Marginal Product of capital=MPK=dy/dK=2*0.5*K^(-0.5)L^0.5= K^(-0.5)L^0.5

Marginal Product of ...

#### Solution Summary

The solution describes the steps to calculate optimal number of workers in the given case.

$2.19